Mike Novogratz Breaks Silence on Crypto ETF Deal With State Street

Galaxy Asset Management, a leader in digital asset investing affiliated with Galaxy Digital, announced a collaboration with State Street Global Advisors, the world’s third largest ETF issuer. The partnership is focused on developing “next generation” investment strategies to provide investors with exposure to the $2.4 trillion digital asset ecosystem.

Mike Novogratz, CEO of Galaxy Digital, expressed his support for the collaboration. He highlighted the potential to unlock the digital asset ecosystem for investors through professionally managed strategies.

In his view, this partnership signifies a potential shift within the financial industry, as established institutions like State Street recognize the growth prospects of the digital asset space beyond just Bitcoin.

We’re excited to be joining forces with @StateStreetGA to offer investors access to the $2.4 trillion digital asset ecosystem through manager-directed strategies. Expanding investment options beyond pure spot Bitcoin is where we see the next level of growth for the ecosystem. https://t.co/gAhHy9054b

— Mike Novogratz (@novogratz) June 26, 2024

The move is indeed significant. SSGA, with $3.7 trillion in assets under management, is a major player on the financial landscape, though dwarfed by industry leaders BlackRock, with a staggering $10 trillion, or Vanguard, with a portfolio of around $8 trillion.

Industry analysts such as Nate Geraci of ETF Store, while acknowledging the importance of the partnership, note the absence of pure spot Bitcoin and Ethereum ETFs in the initial plans. This suggests a cautious approach from SSGA, opting for curated investment vehicles rather than direct cryptocurrency holdings.

State Street, the 3rd largest ETF issuer, is partnering w/ Galaxy to collaborate on digital asset-based ETFs…

Def noteworthy, but surprised State Street not going all-in w/ spot btc & eth ETFs. https://t.co/Uv5k7eKuFB

— Nate Geraci (@NateGeraci) June 26, 2024

Overall, Novogratz-led Galaxy Digital sees this collaboration as a bridge for investors to enter the broader digital asset ecosystem, potentially spurring further growth in the sector. The involvement of State Street, with its vast experience and resources, adds significant credibility to this initiative.

While specific investment strategies have yet to be announced, this partnership marks another major step toward mainstream adoption of digital assets.

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